Company Number: SC751217

Analysis Date: 2025-07-29 13:03 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net current asset position (£-20) and negative shareholders’ funds (£-20), indicating insolvency on a going-concern basis. The cash balance is negligible (£100) relative to current liabilities (£120), suggesting immediate liquidity stress.

2. Key Concerns:

• Negative working capital: Current liabilities exceed current assets, implying difficulty meeting short-term obligations.
• Accumulated losses: Retained earnings show a deficit of £120, reflecting operational losses since inception.
• Recent director turnover: Two resignations within less than a year could indicate instability in management or governance.

3. Positive Indicators:

• Company status is active and not in liquidation or administration.
• No overdue filings for accounts or confirmation statements, indicating regulatory compliance to date.
• Single-person operation with a clear controlling shareholder (75-100% ownership), potentially enabling quick decision-making.

4. Due Diligence Notes:

• Investigate the nature and cause of the £120 deficit in retained earnings; confirm if losses are startup-phase related or indicative of ongoing operational issues.
• Review creditor composition and terms of the £120 current liabilities to assess payment risk and potential negotiations.
• Assess business plan and cash flow projections to understand how the company intends to address negative working capital and build solvency.
• Examine reasons behind recent director resignations to identify any governance or operational concerns.
• Confirm whether the company has access to additional capital or funding sources to support liquidity needs.